PE owned firms optimistic on growth

GROWTH has overtaken costcutting as the priority for private equity owned companies, according to new research.

A report by PwC shows almost 60% of private equity backed companies are expecting to grow this year.

The survey also suggest that acquisitions are on the agenda for the majority of management teams.

Nigel Ward, transaction services partner in PwC’s Leeds office, said: “What is most surprising is that many of these companies have continued to grow through the downturn.

“Although there are concerns about debt levels, the economy and the availability of high quality staff, the general sentiment is positive.”

In an echo of previous warnings about the refinancing bubble approaching, 80% of companies who took part in the research said they need to refinance by 2015.

Many management teams have also downgraded their expectations in returns and have expressed concern about their ability to retain high-calibre staff.